Coforge Latest Updates

Q3 FY26 Financial Performance Revenue and Profit Growth: Coforge reported a 28.5% year-on-year (YoY) increase in revenue, reaching ₹4,188.1 crore for the quarter ending December 31, 2025. Consolidated net profit rose by 16% YoY to ₹296.7 crore, showing resilience despite the typically weak seasonal quarter for the IT industry. Margin Expansion: The company's EBITDA margin improved to 17.4%, and the EBIT margin stood at 13.4%, both up by 191 basis points compared to the same period last year. Management has indicated a target of achieving a 15% EBIT margin in Q4. Order Book & Deal Wins: Coforge secured six large deals during the quarter, contributing to a total order intake of $593 million. The executable order book for the next 12 months now stands at a record $1.72 billion, representing 30.4% YoY growth. Strategic Acquisition of Encora Defining Deal: In late December 2025, Coforge announced the acquisition of US-based AI firm Encora for an enterprise value of $2.35 billion. This move is aimed at creating a scaled, AI-led engineering "moat" and significantly expanding Coforge's footprint in North America and Latin America. Future Outlook: The integration is expected to result in a combined entity with roughly $2.5 billion in annual revenue, positioning Coforge as one of India's largest IT services firms. The deal is projected to be earnings-per-share (EPS) accretive starting in FY27. Dividends and Workforce Updates Interim Dividend: The Board has recommended a third interim dividend of ₹4 per equity share for FY26. The record date for determining eligible shareholders is fixed for January 31, 2026, with the ex-dividend date occurring just before. Employee Metrics: Total headcount reached 35,341 at the end of December, with a net addition of 445 employees sequentially. Notably, the attrition rate improved, dropping to 10.9% from 11.4% in the previous quarter.